Fiscal Year 2018 Second Quarter - 投資家情報｜GMO ...iii) Online Advertising & Media iv) Internet Finance v) Incubation 4. Global Operations 5. Cryptocurrency Segment i) Cryptocurrency

1

STOCK CODE : 9449

August 9, 2018

Fiscal Year 2018

Second Quarter

Results Presentation

2

1. Overview

2. Financial Results

3. Segment Report

i) Group Overview

ii) Internet Infrastructure

iii) Online Advertising & Media

iv) Internet Finance

v) Incubation

4. Global Operations

5. Cryptocurrency Segment

i) Cryptocurrency Exchange Business

ii) Cryptocurrency Mining Business

6. GMO Aozora Net Bank

3

Overview | Executive Summary: Q2 FY2018

(JPY billions)Q2’17

(Jan-Jun)

Q2’18

(Jan-Jun)

YoY

ChangeChange

Net Sales 74.34 91.27 +16.93 +22.8％

Operating Profit 7.49 11.78 +4.28 +57.2％

Ordinary Profit 7.37 11.33 +3.95 +53.6％

Net Profit 1.95 4.23 +2.27 +116.8％

Record high

Record high

Record high

4

• OP: JPY 6.51B, up 2.55B (up 64.5% YoY)

• Strong trends in Internet Infrastructure and Internet Finance. Driven by significant

hike in VC (incubation) after stock sale.

Q2’17 Q2’18

Infrastructure

FinanceOther

VC

3.96

6.51

Ad

+1.46

+0.25

+0.96

-0.12 -0.32+0.33

Cryptocurrency

Overview | Executive Summary: Q2 FY2018 (Apr-Jun)

Record high

(JPY billions)

5

Overview | Executive Summary: Q2 FY2018 (Apr-Jun)

Internet

Infrastructure

Net sales JPY 24.82B (Up 21.4% YoY)

OP JPY 2.76B (Up 53.7％ YoY)

Each business area grew, including payment, SSL, and provider.

Online Ad & Media

Net sales JPY 11.01B (Up 0.1％ YoY)

OP JPY 0.06B (Down -66.4％ YoY)

In-feed advertising grew but we’re responding to changes in advertisement distribution regulations,

such as ad fraud issues.

Internet Finance

Net sales JPY 7.56B (Up 10.1％ YoY)

OP JPY 2.60B (Up 10.7％ YoY)

Profitability is improving effectively through analysis of big-data despite drop in trading volume.

Cryptocurrency

Net sales JPY 2.65B (Up 2.65B YoY)

OP JPY 0.25B (Up 0.33B YoY)

Net sales are growing rapidly. Cryptocurrency exchange business built a revenue base, and

cryptocurrency mining business was affected by changes in the environment.

Record high

6

Overview | Shareholder Returns (Policy and Actual)

Total Shareholder

Returns Ratio

50%

Quarterly dividend Net profit at end of fiscal

year to form basis of

buyback in following year

Dividend Payout Ratio

Over 33%

Share Buyback

17%

Dividend per share

Policy

(JPY) Q1 Q2 Q3 Q4 Annual

FY2017 5.00 6.00 6.00 6.00 23.00

FY2018 6.00 6.20 - - -UpUp

7

1. Overview


3. Segment Report

i) Group Overview




v) Incubation






8

2013

Q1 Q2 Q3 Q4

2014 2015 2016 2017 2018

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q2Q1

Financial Results | Net Sales by Segment

(JPY billions)

Revenue up

24.2％YoY

Other

Incubation

Cryptocurrency

Internet Finance

Online Ads/Media

Internet Infrastructure

9.0 9.4 9.7 9.911.2 11.4 11.5 11.9

13.0 13.3 14.1 14.8 15.3 15.8 16.517.6

19.7 20.4 21.023.3 23.3

24.87.8 7.9 7.6 8.0

9.1 8.2 8.49.4

11.69.0

9.510.3

11.5 10.311.1

11.1

11.5 11.0 10.7

10.712.2

11.0

5.55.6 5.1

5.0

5.54.7

5.6

6.9

7.5

7.87.6

6.7

6.7 7.86.0

6.7

5.56.8 6.9

6.9

8.1 7.5

0.9

0.62.6

2.0

22.823.8 23.3 23.7

27.0

25.4

27.4

29.4

32.5

30.9 31.2 31.5

33.1 33.5 33.1

35.136.0

38.2 38.0

41.8

43.7

47.5

9

1.31 1.32 1.28 1.350.98

1.361.15 1.28 1.12 1.21

1.00 0.961.39

1.591.96

1.65

2.151.80

2.02

2.50 2.58 2.76

0.65 0.590.44 0.26

0.50

0.390.38

0.35 0.56 0.210.26

0.15

0.44 0.21

0.41

0.20

0.25

0.19

0.28

0.230.31 0.06

1.251.17

1.161.18 1.42 1.05

1.29

2.46 2.18 2.80

2.47

2.19

2.07

3.311.97

2.24 1.232.35

2.33

2.05

3.30

2.60

-0.23

0.53

-0.73

0.25

0.82

0.28

0.48

0.18

0.38

1.56

-0.40 -0.17 -0.29

-0.32 -0.69

-0.12 -0.17 -0.10 -0.08 -0.11 -0.15

-0.49 -0.25

-0.09 -0.09 -0.16 -0.10

-0.43 -0.12

-0.07

-0.15

-0.75

2.89 2.97

2.74 2.38 2.25 2.70

3.59

4.36

3.85

4.64

3.58

2.72

3.65

5.03

4.29 4.03

3.53

3.96

4.49

5.65

5.26

6.51

2013

Q1 Q2 Q3 Q4

2014 2015 2016 2017 2018


Financial Results | Profit by Segment

(JPY billions)

Profit up

64.5％YoY

Other

Incubation

Cryptocurrency

Internet Finance

Online Ads/Media

Internet Infrastructure

10

(JPY millions)Q2'17

(1-6/2017)

Q2'18

(1-6/2018)Change

supplementary

information

Net Sales 74,340 91,270 22.8%

Gross Profit on Sales 35,647 45,664 28.1%

Operating Profit 7,497 11,783 57.2%

（OP Margin） 10.1% 12.9% +2.8pt

Non Operating Profit and Loss -118 -446 -

Ordinary Profit 7,379 11,337 53.6%

Extraordinary Profit or loss -536 676 -

Profit before Tax 6,842 12,014 75.6%

Corporate Taxes etc. 3,584 4,343 21.2%

Profit attributable to

Owners of the Parent1,952 4,231 116.8%

Financial Results | Consolidated Profit and Loss

Foreign exchange loss: -260M

Equity investment loss: -250M

Gain on sales of investment securities: +690M

11

Financial Results | Consolidated Balance Sheet

(JPY millions)End of

12/2017

End of

6/2018Change

GMO

Financial HD

(End of 6/2018)

Change

Current Assets 707,112 700,842 -6,270 518,272 -31,542

Cash & Deposits 119,006 122,429 3,422 35,824 -717

Fixed Assets 42,047 52,426 10,379 6,768 1,039

Goodwill 2,310 2,116 -194 692 -81

Software 5,140 5,288 148 1,449 7

Investment Securities 7,701 9,279 1,578 2,299 903

Total Assets 749,160 753,269 4,109 525,040 -30,503

Liabilities 674,805 670,307 -4,498 491,053 -32,694

Interest-bearing debts 112,656 139,492 26,835 56,890 -3,459

Net Assets 74,354 82,961 8,607 33,987 2,191

Non-controlling Minority Equity 30,582 35,330 4,747 625 -123

Shareholders' Equity 43,697 47,559 3,862 33,362 2,314

Earned Surplus 38,113 40,915 2,801 29,452 2,298

(Shareholders' Equity Ratio) 5.8% 6.3% +0.5pt 6.4% +0.8pt

Liabilities/Net Assets Total 749,160 753,269 4,109 525,040 -30,503

12

Financial Results | Consolidated Cash Flow

(JPY billions) Q2 FY17 Q2 FY18 Significant Factors GMO-FH

Operating Cash Flow -3.40 ＋0.44 +6.09

Investing Cash Flow -5.15 -20.29Purchase of tangible and intangible fixed assets:

-19.4B (including cryptocurrency mining

business: -16.0B)-0.83

Financing Cash Flow -6.99 +24.53 Interest-bearing debt: +26.8B -5.18

Change in Cash and Equivalents-15.35 ＋4.21 +0.06

Balance of Cash and

Equivalents74.77 122.02 35.58

13

1. Overview


3. Segment Report

i) Group Overview




v) Incubation






14

Stock Code Stock Name ExchangeMarket Cap*1

(JPY billion)% Ownership*2 Equity Share

(JPY billion)

9449 GMO Internet TSE 1 253.0

3769 GMO Payment Gateway TSE1 452.4 51.6％ 233.4

7177 GMO Financial Holdings TSE JQS 103.4 80.5％ 83.0

3788 GMO CLOUD TSE1 39.1 51.8% 20.2

3633 GMO Pepabo TSE JQS 13.1 64.1％ 8.3

4784 GMO AD Partners TSE JQS 7.7 54.9％ 4.2

6180 GMO Media TSE MOTHERS 4.3 65.4% 2.8

3695 GMO Research TSE MOTHERS 2.8 53.7% 1.5

6026 GMO TECH TSE MOTHERS 2.6 54.1% 1.4

Group Total 878.4 354.8

*1 Market value as of 8/8/2018 *2 Includes indirect holdings *3 Calculated as the sum of the listed market cap values

Group Overview｜Listed Group Companies: Equity Share

15

Group Overview｜Business Segments (Composition)

*Net sales ratio is calculated based on the numbers before cancelling inter-segment transactions*We established the new Cryptocurrency segment in Q1 FY2018, and Mobile Entertainment segment was merged into other segments.

Solid revenue base

10.5M customers

16

3,200 3,364

3,533

3,800 3,838

4,014 4,072 4,198 4,188

4,415 4,435

4,600 4,633

4,876

5,156 5,156 5,080

5,275 5,278 5,316 5,454

5,670

Goal: Workforce of

over 50%engineers

34.3％

44.9％44.2％

42.0％

40.0％40.0％

2013

Q1 Q2 Q3 Q4

2014 2015 2016 2017 2018


Group Overview｜Strengths: Technology

Partners

% Engineers

17

1. Overview


3. Segment Report

i) Group Overview




v) Incubation






18

Hosting & Cloud

Strong

No. 1 Domain Registry

Strong

No. 1 Domain Registrar

No. 1 Ecommerce

No. 1 Security

No. 1 Payment

Strong

No. 1

Internet Infrastructure | Segment Composition

81.7％ *1

Domestic market share at

87.9％*2


56.0％*3


73,000paid stores

40.5％

93,000 merchants

*1 Based on our own data *2 Based on ICANN data *3 Based on Webhosting.info data *4 YoY growth in domestic certificates issued in Q2

YoY increase in certificate issues*4

19

2013

Q1 Q2 Q3 Q4

2014 2015 2016 2017 2018


Internet Infrastructure | Net Sales by Sub-Segment

(JPY billions)

Revenue up

21.4％YoY

Other

Payment

Security

Ecommerce Solutions

Hosting & Cloud

Domain

Provider

0.8 1.1 1.2 1.4 1.6 1.8 2.0 2.0 2.3 2.5 2.7 2.9 3.0 3.2 3.4 3.6 3.9 4.4 4.7 5.2 5.56.4

1.11.1 1.1 1.1

1.4 1.4 1.3 1.31.5 1.5 1.4

1.7 1.9 1.9 2.0 1.91.9

2.02.0

2.12.1

2.1

3.33.4 3.4 3.4

3.4 3.3 3.4 3.43.4 3.4 3.4

3.5 3.4 3.43.4 3.5

3.53.5 3.4

3.53.5

3.5

0.80.7 0.7 0.8

1.1 1.1 1.2 1.11.3 1.4 1.6

1.8 1.8 1.92.0

2.2 2.12.1 2.1

2.4 2.3

2.5

0.60.6 0.6

0.7

0.8 0.9 0.7 1.00.9

1.1 1.0

1.1 1.11.1

1.31.2 1.2

1.2 1.2

1.4 1.4

1.4

1.31.4 1.5

1.6

1.7 1.7 1.8 1.8

2.12.1

2.5

2.62.9

2.9

3.1

4.2

5.55.5

5.9

7.3 6.7

6.8

0.80.8 0.9

0.6

0.9 0.9 0.8 0.9

1.11.0

1.2

0.90.9

1.1

0.9

0.7

1.2

1.41.4

1.3 1.6

1.8

9.0 9.4

9.7 9.9

11.2 11.4 11.5 11.9

13.0 13.3

14.1 14.8

15.3 15.8

16.5

17.6

19.7

20.4 21.0

23.3 23.3

24.8

20

2013

Q1 Q2 Q3 Q4

2014 2015 2016 2017 2018


Internet Infrastructure | Operating Profit

(JPY billions)

Profit up

53.7%

YoY1.31 1.32

1.281.35

0.98

1.36

1.15

1.28

1.12

1.21

1.000.96

1.39

1.59

1.96

1.65

2.15

1.80

2.02

2.502.58

2.76

21

2013

Q1 Q2 Q3 Q4

2014 2015 2016 2017 2018


Internet Infrastructure | Contracts

(JPY millions)

Solid revenue base

9.27M

customers4.774.95

5.145.46

5.625.77

6.016.25

6.45

6.857.16

7.687.88

8.358.61

8.978.72 8.77 8.75

8.98 9.109.27

22

For Google Chrome*, the warning “Not secure” will be shown on insecure

websites (websites without SSL)

｜www.exmple.com

｜www.exmple.com

Current

Future

SSL is a global trend

*New Google Chrome browser from July 24, 2018 onwards

Internet Infrastructure | SSL (security)

Not secure

23

Support financial institutions

to expand the availability of

cashless payment

Ginko Pay

Merchants & various services

NHK fees

Automobile tax

Utilities prices

etc.

NEW

*Source: GMO Payment Gateway’s FYE 9/2018 3rd Quarter Results Presentation

Direct debit through smartphone

applications linked with bank accounts

Internet Infrastructure | Ginko Pay

24

1. Overview


3. Segment Report

i) Group Overview




v) Incubation






25

2013

Q1 Q2 Q3 Q4

2014 2015 2016 2017 2018


Online Advertising & Media｜Net Sales

(JPY billions)

Revenue up

0.1%

YoY

In-feed advertising

“Akane” is successful

■ Internet Media■ Online Advertising■ Internet Research/Other

4.4 4.6 4.34.7

5.5

4.6 4.95.7

7.4

5.2 5.56.2

6.86.1

6.8 6.97.3 7.1 6.8 6.9

8.3

7.0

2.82.9

2.82.7

3.0

3.03.0

3.1

3.5

3.33.2

3.4

3.8

3.5

3.6 3.43.3

3.03.1 3.0

3.1

3.2

0.40.4

0.40.5

0.5

0.50.5

0.6

0.6

0.50.7

0.6

0.7

0.7

0.6 0.70.8

0.70.7 0.8

0.7

0.7

7.87.9

7.68.0

9.1

8.28.4

9.4

11.6

9.09.5

10.3

11.5

10.3

11.1 11.111.5

11.010.7 10.7

12.2

11.0

26

2013

Q1 Q2 Q3 Q4

2014 2015 2016 2017 2018


Online Advertising & Media｜Operating Profit

(JPY billions)

Profit down

66.4%

YoY

Affected by ad fraud

issues

0.65

0.59

0.44

0.26

0.50

0.39 0.380.35

0.56

0.21

0.26

0.15

0.44

0.21

0.41

0.20

0.25

0.19

0.28

0.23

0.31

0.06

27

1. Overview


3. Segment Report

i) Group Overview




v) Incubation






28

5.5 5.6

5.1 5.0

5.5

4.7

5.6

6.9

7.5 7.8

7.6

6.7 6.7

7.8

6.0

6.7

5.5

6.8 6.9 6.9

8.1

7.5

1.25 1.17 1.16 1.181.42

1.051.29

2.462.18

2.802.47

2.19 2.07

3.31

1.972.24

1.23

2.35 2.332.05

3.30

2.60

2013

Q1 Q2 Q3 Q4

2014 2015 2016 2017 2018


(JPY billions)

Revenue up

10.1%

Profit up

10.7%

YoYNet

Sales

OP

Internet Finance | Historical Performance by Quarter

29

244257

327

354

160

290

2013

Q1 Q2 Q3 Q4

2014 2015 2016 2017 2018


24.0％24.8％

26.8％24.4％25.2％

20.2％

Internet Finance｜FX Trading Volume

Trading volume

Share

(JPY trillions)

No.1 annual FX

trading volume

worldwide for 6th

consecutive year

Prepared based on Results Presentation of GMO Financial HD for Q2 of FY2018 and “Monthly Statistical Bulletin on Over-The Counter Retail FX Margin Trading” published by the Financial Futures

Association of Japan (FFAJ)

30

1. Overview


3. Segment Report

i) Group Overview




v) Incubation






31

Q2 (Apr-Jun) Earnings

Net sales 2.01B OP 1.56B

Actual

Operated JPY 14B worth of funds. 13 out of 114 GMO VP

investees have achieved IPOs.

Major holdings

Major IPOs

Incubation

32

Name GMO Global Fintech Fund

Amount Currently, 4B yen

Investor

Application period Until May 31, 2019

Incubation｜Established new fund

33

1. Overview


3. Segment Report

i) Group Overview




v) Incubation






34

Infrastructure

Finance

Mining

23 countries, 63 locations, 1,298 global partners (“staffs”)

*As of June, 2018

2 countries in Northern Europe

Global Operations｜Locations

35

8.4％

2013

Q1 Q2 Q3 Q4

2014 2015 2016 2017 2018


Global Operations｜Global Net Sales

Net

Sales

75.6％

YoY growth

0.53

0.76

0.570.66 0.69

0.820.73

0.88

1.111.20 1.21 1.26

1.09 1.14

1.66

1.44

2.29 2.27 2.24

3.71

2.97

4.00

6.8％5.9％

3.4％3.9％3.1％3.2％

(JPY billions)

Global

Sales Ratio

36

1. Overview


3. Segment Report

i) Group Overview




v) Incubation






37

Cryptocurrency mining business

Cryptocurrency exchange business

Cryptocurrency payment

Cryptocurrency

Mining

Payment

Exchange

Aim to become No. 1 in the field of cryptocurrency

┗ In-house mining

┗ Develop, manufacture, and sell mining machines

┗ Cloud mining

Cryptocurrency business | Major policies

38

-0.23

2017 2018

Q2 Q3 Q4 Q1

0.53

-0.73

0.96

2.65

Revenue of JPY 2.6B in just a

year since the launch

Q2

0.25

1.9

0.63

Cryptocurrency business | Historical performance by quarter

(JPY billions)

OP

Net

Sales

39

100%

Cryptocurrency mining business

80.3%

28.2%

58.3%

Other 2 foreign corporations

(TSE1: 9449)

(JQS: 7177)

Cryptocurrency exchange business

Cryptocurrency business | Operators and capital-based relationships

40

Cryptocurrency exchange business | Historical performance by quarter

-0.23

2017 2018

Q2 Q3 Q4 Q1

0.50

-0.76

0.86

1.42

Q2

0.550.19

Revenue increased

7.3-fold

QoQ

Achieved positive figures

Building revenue base that

is not affected by price

fluctuations

(JPY billions)

OP

Net

Sales

41

Cryptocurrency exchange business | Trading value and customer accounts

Trading value (JPY billions)

Customer accounts (thousands)

Customer accounts are growing steadily

Cryptocurrency accounts: 177K in 1 year

FX accounts: 720K in 13 years

150

418

670

3,298

4,152

1,582

804

293189 208

126 163

5 6 7 8 9 10 11 12 1 2 3 4 5 6 7

2017 2018

71

125

144154

163169

177

42

1. Overview


3. Segment Report

i) Group Overview




v) Incubation






43

2017 2018

Q4 Q1 Q2

0.19

1.17

-0.36

0.61

0.09

*Gross figure including revaluation gain (loss) of cryptocurrency, which was -0.16B in Q1 and +0.06B in Q2

Revenue up

91.8％QoQ

Our hash rate is increasing as expected

Loss was against our expectation

Change in policy

Cryptocurrency mining business | Historical performance by quarter

(JPY billions)

OP

Revenue*

44

21

93124

295

373

472 528 568

22 27

108129

241

299

384 384

2017 2018

Our hash rate and the amount

of mined Bitcoin increased as

planned until June

Change in policy in July

Dec Jan Feb Mar Apr

(PH/s)

(BTC)

Our hash rate (PH/s)

Amount of mined Bitcoin (BTC)

May Jun Jul

Cryptocurrency mining business | Our hash rate and the amount of mined Bitcoin

45

Newly issued

amountFixed (1,800BTC/day)

BTC priceFluctuates

Total hash rateFluctuates

Profitability

Cryptocurrency mining business | Profitability

46

Bitcoin price(USD)

998

7,916

17.1 18.1 18.7

Hash rate(PH/s)

2,463

43,474

Low Bitcoin

price

Increasing total

hash rate

Decreasing

profitability

Cryptocurrency mining business | Bitcoin macro environment

47

Change in priority

External factors (uncontrollable)

① Low Bitcoin price

② Increasing total hash rate

Internal factors (only ③ is controllable)

① Purchase price of existing mining technologies

(JPY 260K → 60K)② Depreciation period (usually 5 years → 2 years)

③ Electricity cost Secure more inexpensive

power supply

① and ② cannot

be changed

Measures

Cryptocurrency mining business | Organize issues

48

Effect: control investment & early payback

In-house mining Cloud mining Sell machines＞＞

Sell machines In-house mining Cloud mining＞＞

Before

After

Cryptocurrency mining business | Change in priority

49

Capability 24 TH/s 24-33 TH/s (variable)

Power

consumption1,950 W/unit

(81 W/TH)

1,950-3,417 W/unit(81-103 W/TH)

Price USD 1,999 USD 1,999

Delivery October (tentative) October (tentative)

Cryptocurrency mining business | Mining machine specs

50

Cryptocurrency mining business | information session

Japan June 6: Cerulean Tower

Hong Kong June 26: Grand Hyatt

SingaporeJune 28: Conrad Centennial

Singapore

Dubai July 2: Conrad Dubai

Frankfurt July 6: Jumeirah Frankfurt

Zurich July 9: Park Hyatt Zurich

London July 11: The Savoy

Los AngelesJuly 17: Beverly Wilshire, Four

Seasons Hotel

New York July 19: Sofitel New York

Moscow July 30: The Ritz-Carlton Moscow

51

Jun Jul Aug Sep OctJan Feb Mar Apr May Nov DecDec

Mining based on store-bought mining computers

Βeta

V1 operation

V2 operation

Mass production

Design Manufacture

wafer

Beta Mass production

V2 launch Ship V2

Launch

V1

V2

Cloud

mining

Sale

June 6

July 2

Change in priority

Cryptocurrency mining business | Plan

The year 2018

Mining

52

External

environment

BTC market value: Rise

Total hash rate (HR): 23,000 PH/s

Around USD 10K

30,000 PH/s

Dropped to USD 6,000-7,000

Exceeded 40,000 PH/s in June

InvestmentTarget HR: 3,000 PH/s

FY2018: JPY 38.0BNo change

Shift to sale

Control investment & early payback

Development

status

April: Mining based on our own chips

June: 7 nm chip operation

April: Mining based on store-bought

mining computers

June: 7 nm (V1) operation

October: 7 nm (V2) operation

April: Mining based on store-bought

mining computers

June: 7 nm (V1) operation

October: 7 nm (V2) operation

In-house

miningAs planned As planned Shift to sale

Sale -

From Q2 onwards: Start accepting

reservation

From Q4 onwards: Launch

June: Start accepting reservation

October: Shipment (tentative)

Cloud mining To be launched in August To be launched in June Change in priority

Q4‘17 Q1’18 Q2’18Cryptocurrency mining business | Summary

53

Up

70.5％YoY

Increase in the

number of wallet

users accelerated

17.8 18.7*Source: blockchain.com. The above graph shows the number of Blockchain Wallet Users.

15.82M

26.98MCryptocurrency mining business | Number of wallet users

54

1. Overview


3. Segment Report

i) Group Overview




v) Incubation






55

決済

Share acquisition: JPY9.7B (9.37%)

JV established

Investment: JPY3.86B (3.36%)

Launched on July 17, 2018

Exchange

Mining

Finance, Payment, and Cryptocurrency

(Sumitomo Mitsui

Banking Corporation )

(Daiwa Securities Group Inc., )

(Aozora Bank)

(14.9%)(85.1%)

Securities/FX

Net BankPayment

Cryptocurrency

56

Management expertiseTechnological

strengths in finance

Customer first at any time to become the

technology bank

Net Bank | Launch (July 17, 2018)

*Source: GMO Aozora Net Bank launch presentation on July 17, 2018

(Aozora Bank)

57

Self-developedGroup’s solid

customer base

Utilizing

pioneering

technology

Price

competitivenessSpeed Innovative service

Strengths

Points of differentiation

Net Bank | Strengths and differentiation


58

ATM

Seven Bank & AEON Bank (next spring)

Smartphone application

Cash card

High-security debit card (next spring)

Available 24 hours a day, every day

Net Bank | Touch point


59

証券Internet Infrastructure:

number of contracts 9.27M*

Ecommerce: number of stores 73k*

Payment contracts 93k*

Securities and FX accounts 1.06M**

Cryptocurrency accounts 169K

*Figures as of 6/2018. There is some overlapping. **There is some overlapping.

Net Bank | GMO Internet Group’s strengths

Offers innovative services to

10.50M customers

60

Solid revenue base of

10.50M customers

Partnering with various services

Hub of all services

Bank

Securities

Collaboration between

banking and securities

Infrastructure

Business and individual

accounts

Ecommerce

Integrate with virtual

accounts

Media

Spread of debit for

individual customers

Payment

Open API

Digital certificates

Enhanced security

×

Net Bank | Concept and vision

61

Customer first at any time to become the

number-one technology bank

626262

Internet for Everyone

636363

This document includes projections based on expectations, premises and plans as of August 9, 2018. These projections may differ from actual

results due to factors including changes in the global economy, competition, exchange rate fluctuations, market cap of cryptocurrency, natural

disasters and other unforeseeable events. Some of the figures given, such as market share are based on our own calculations. These figures may

differ from research agency figures.

Information contained in this document is provided for information purposes only and does not constitute solicitation of investors. Further,

results forecasts and other forward-looking statements are based on premises that include risks and factors that are largely indeterminable.

Please understand that actual results may differ significantly as a result of forces including economic conditions and market environment. No

responsibility for any reason is accepted for damage sustained as a result of actions taken based on this information.

Copyright (C) 2018 GMO Internet, Inc. All Rights Reserved.

Documents

Fiscal Year 2018 Second Quarter - 投資家情報｜GMO ...iii) Online Advertising & Media iv) Internet Finance v) Incubation 4. Global Operations 5. Cryptocurrency Segment i) Cryptocurrency